Summary: UNIVERSITY OF HOUSTON SYSTEM
ADMINISTRATIVE MEMORANDUM
SECTION: Fiscal Affairs NUMBER: 03.G.03
AREA: General Accounting
SUBJECT: Financial System Verification of Cost Center Transactions
February 22, 1996; Revised May 25, 2011 Page 1 of 3
1. PURPOSE
In order to minimize the risk of unauthorized use of its funds and to ensure that revenues
are properly recorded, entries in the financial system must be monitored monthly. This
administrative memorandum sets general guidelines for universities to follow in
developing cost center verification procedures.
2. POLICY
2.1. Each component of the University of Houston System shall develop procedures
for monthly verification of transactions for each active cost center in the financial
system against departmental records to ensure accuracy and propriety of the
entries.
2.2. Cost centers are to be monitored each month through the preparation of a
verification report. The reviewer's review and approval of the verification report
should be documented.
2.3. A complete cost center verification includes: